The inclusion of two more South Asian countries, Nepal and Bangladesh, for graduation into the category of âdeveloping countriesâ marks a significant milestone for these two countries. The UN General Assembly resolution accepting the recommendation of the Economic and Social Councilâs Committee for Development that these two countries (and Laos), categorised until now as Least Developed Countries meet the criteria to be called âdevelopingâ countries is a measure of the success of their policies towards achieving some development goals. This year, as laid down by the CDP, the criteria were per capita Gross National Income of $1,018 and above; a high score of 60 on the Human Assets Index, which includes a health index and education index; and a low score of 36 on the Economic & Environmental Vulnerability Index. Countries must meet at least two of the criteria in order to qualify for inclusion in the developing countries category. The markers for the âgraduationâ itself are higher.
However, the change in category is a double-edged sword. It could give rise to disruption in a countryâs development as the very enablers that have helped it come this far are no longer available to it. As an LDC, a country gets trade related concessions including market access, and development assistance, technical assistance and special pathways to participate in international processes. It is in recognition of the reality that withdrawing such benefits suddenly could plunge the country back into LDC conditions, that graduating countries are given a transition period during which most of the benefits available to LDCs remain available to graduating countries. Usually, the transition period is three years, but this time, in view of the economic, social and other disruptions caused by Covid-9, the UN General Assembly has taken the right step by giving five years.
This editorial first appeared in the print edition on November 29, 2021 under the title âNew horizonsâ.
